Employers FAQs

A1: All employers of three or more workers are required to carry workers' compensation coverage.  Employers actively engaging in activities required to be licensed by the Construction Industries Licensing Act must have workers' compensation coverage, regardless of the number of employees.  

A2: Yes.  

A3: Family members who are paid wages are considered employees. For clarification on your business' situation, please call our employer compliance bureau to determine whether or not someone counts as an employee (505) 841-6851.

A4: Yes, if the business is a corporation, limited liability company, or professional association. Under  Section 52-1-7, “executive employees” are included in the headcount of three or more employees. An “executive employee” means the “chairman of the board, president, vice president, secretary, treasurer or other executive officer, if [he or she] owns 10 percent or more of the outstanding stock,  of the professional or business corporation or a 10 percent ownership interest in the limited liability company.” A business owner would also be counted if the business is engaged in activities required to be licensed by the Construction Industries Division (CID), although a CID sole proprietor has the option to exempt themselves. Also, if the partnership is organized as a limited partnership, the partners would be counted as employees for purposes of determining if mandatory coverage is required.

A5: Yes. While an owner or executive employee may opt for exclusion from coverage, he/she is still counted for purposes of determining whether the business employs three or more workers.

A6: Any employer who does not meet the coverage requirements of the Workers’ Compensation Act will be referred to the Employer Compliance Bureau for enforcement action.

A7: Every employer is required to display the WCA poster with Notice of Accident forms in a conspicuous place on its business premises stating the requirement that workers notify employers of accidents. Both the poster and forms are available from the WCA at no charge to the employer (see "forms" on this website).

A8: You should report all work accidents to your insurer or self-insurance program within 72 hours after you receive notice of the accident or injury, regardless of whether you believe the accident or injury is compensable.

A9: You have the right to select the doctor the worker will see, or to allow the worker to select a doctor. It is recommended that you check with your workers’ compensation insurance carrier beforehand to determine if the insurer has a preference. Your decision on doctor selection should be communicated to the worker in writing as quickly as possible.

A10: If you initially select the doctor, the worker has the automatic right to change doctors after 60 days of treatment by sending a completed "Notice of Change of Healthcare Provider" form to you or to your insurance carrier. If the worker selects the doctor first, you have the automatic right after 60 days of treatment to change the worker to a doctor of your or your insurance carrier’s own choosing by completing the same form and sending it to the worker.

A11: As the employer, you should consider whether you have work available for the worker within the medical restrictions recommended by the doctor. If so, you are encouraged to offer work within those restrictions. Doing so will likely maintain a positive employment relationship and save on your bottom line in the long run.

A12: You are not required to hold a workers’ position open following a job accident and/or worker’s inability to return to work. You can replace the worker. However, once the worker reaches Maximum Medical Improvement and is released by the doctor to return to work, you are required by law to offer to rehire the worker if:
a. The worker requests re-employment;
b. You are hiring;
c. The treating doctor certifies the worker is fit to perform the pre-injury job or a modified duty job without significant risk of re-injury;
d. The job is available.
If you are hiring, you shall also offer to rehire the worker who applies for any job paying less than the pre-injury job, provided the worker is qualified for the job and the doctor certifies that the worker is fit to perform the job offered without significant risk of re-injury. Employers must treat injured workers in good faith and not punish them or terminate them solely because they were injured and thereafter seek workers’ compensation benefits.

A13: All employers subject to the insurance coverage requirements of the Workers’ Compensation Act must pay a quarterly assessment fee of $4.30 for each covered employee working for their business on the last working day of each quarter ($2 is paid by the workers and $2.30 is paid by employers). The fee is submitted to the New Mexico Taxation and Revenue Department using the WC-1 form. Information about how to register for the assessment fee can be found on the Taxation and Revenue Department website, https://www.tax.newmexico.gov/Businesses/workers-compensation or you may contact them at (505) 841-6626.

A1: You can report workers’ compensation fraud to the Enforcement Bureau at the WCA by calling 505-841-6832 or toll-free at 1-800-255-7965 or by completing a report form found on the Enforcement page of this website at https://workerscomp.nm.gov/Enforcement and then emailing the form to the Enforcement Bureau.